The Moroccan government has announced plans to increase its 2026 budget by about 20 billion dirhams (approximately $2 billion) as part of efforts to protect the economy and citizens from the ripple effects of the ongoing Middle East conflict.
A government source confirmed the development, noting that the additional funding was designed to strengthen financial reserves and support key sectors facing pressure from global energy disruptions. The announcement follows remarks by government spokesperson Mustapha Baitas, who outlined the plan but did not initially disclose the full value of the adjustment.
The move comes as Morocco continues to feel the impact of instability in global energy markets, particularly due to its heavy dependence on imported oil, gas, and coal, with no domestic refining capacity. Rising fuel and transport costs linked to the conflict have added pressure on households and businesses across the country.
Officials say the extra budget allocation will be used to stabilise prices of essential goods and services, including cooking gas, public transport, and electricity tariffs, in order to protect citizens’ purchasing power during the period of global uncertainty.
Government spokesperson Baitas explained that the measures are intended to create a financial buffer that will allow Morocco to respond to any further economic shocks linked to prolonged geopolitical tensions or supply disruptions.
The additional funding will also be directed toward addressing damage caused by recent flooding in parts of northern Morocco, as well as covering other unforeseen expenditures arising from global economic volatility.
Despite external pressures, Moroccan authorities remain optimistic about the country’s economic outlook. The government projects economic growth of about 5.3 per cent in 2026, up from 4.6 per cent the previous year, supported by improved agricultural output following unusually strong rainfall that helped ease a prolonged seven-year drought.
Finance officials also expect the fiscal deficit to narrow by 0.5 percentage points to around 3 per cent of GDP, driven by stronger tax revenues and economic recovery. Public debt is projected to decline to about 66 per cent of GDP over the same period.
However, subsidy costs remain a significant burden on public finances. Budget Minister Fouzi Lekjaa previously disclosed that government spending to stabilise transport fares and electricity prices amounts to roughly 648 million dirhams per month.
Analysts say Morocco’s decision reflects broader concerns among import-dependent economies that remain vulnerable to global oil price shocks and geopolitical instability. The new budget measures are expected to help maintain social stability while shielding vulnerable households from rising living costs.
